Off-Market Deal Flow: Oil & Gas Service Business

For buyers looking for an off-market oil and gas business, this company in Houston, TX, offers a long-established opportunity in a sector vital to the Texas economy. With over 40 years in business, the company specializes in wholesale industrial equipment and oilfield support services, operating in a region known for its strong ties to the oil and gas industry.

Financial Overview

• Annual Revenue: $3,968,000
• Employee Count: 4
• Year Established: 1984
• Location: Houston, TX

Estimated EBITDA

The wholesale industrial equipment and oilfield services industry typically operates on EBITDA margins ranging from 8% to 15%, depending on contract stability, equipment leasing, and customer concentration.

Using an estimated 12% EBITDA margin, this business likely generates around:
🔹 Estimated EBITDA: $476,160

Market Considerations

• Established Supplier in Oil & Gas Industry: the company serves oilfield operators, construction firms, and industrial clients, providing both equipment sales and leasing services.
• Strategic Location: Based in Houston, a major hub for energy, industrial, and oil & gas services, ensuring consistent demand.
• Competitive Landscape: Competitors in the area include Drillers Supply Inc., Odessa Pumps, and Houston Anodes International LLC.
• Revenue Stability: The company has shown modest revenue fluctuations over the past three years, with -1% growth in 2019–2020, -5% in 2020–2021, and a rebound of +2% in 2021–2022.

Valuation Estimate

EBITDA multiples for industrial wholesalers and oilfield service providers typically range from 3.5x to 6x, depending on asset values, contract stability, and industry demand cycles.

• Low-end (3.5x EBITDA): $1.67M
• Mid-range (4.5x EBITDA): $2.14M
• High-end (6x EBITDA): $2.86M

Given the small employee count, long industry presence, and Houston-based operations, the business would likely trade in the 4x to 5x EBITDA range, placing its estimated valuation between $1.9M and $2.4M.

Why This Business?

✅ 40+ years in business with established supplier relationships
✅ Located in Houston, the epicenter of oil & gas operations
✅ Diverse revenue streams from equipment sales, rentals, and oilfield support

This could be an attractive opportunity for an oilfield services firm looking to expand, an industrial distributor seeking Houston-based operations, or an entrepreneur with experience in industrial sales.

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